Patrick is set to sign the legislation at 2:30 at the Springfield State Office Building at 436 Dwight St.

"The city needs this bill to get back on its feet and to move forward," said Cynthia M. Roy, a fiscal spokeswoman for Patrick. "We're happy the governor will be able to sign it and the proper tools will be in place to help the city survive financially and to revitalize the city."

Legislators said the most important aspect of the bill is that it gives the city a significant financial break. The bill helps shield the city from cuts in state aid that Patrick could approve this month as part of his effort to balance the state budget during a fiscal crisis.

According to the bill, Springfield will save an average $7 million a year by receiving 15 years to pay off a $52 million, no-interest state loan awarded in 2004 when the city was close to bankruptcy. Current law requires Springfield to retire the loan in five years.

Patrick said the bill is needed to allow him to abolish the Springfield Finance Control Board in Springfield, created in the 2004 law to approve and oversee city spending. Patrick plans to end the board by June 30.

The bill creates a new chief financial and administrative officer in Springfield to coordinate and supervise all financial services and activities. It also establishes a comptroller and a director of internal audit.

The bill bears the imprint of the Massachusetts Teachers Association and the Massachusetts Association of School Committees.

Both organizations worked closely with the Patrick administration in crafting parts of the bill that deal with schools.

The access came after the teachers association in 2006 spent about $2.5 million on advertising in support of Patrick's campaign for governor.

Stephen J. Finnegan, general counsel for the association of school committees, said the two organizations sought to protect the powers of the Springfield School Committee.

"It's about as good as we could have done," Finnegan said. "Is it perfect? No."

The Springfield School Committee retains powers to make policies including the right to negotiate contracts with teachers, Finnegan said.

The bill consolidates the business and financial services department of the School Department under the new chief administrative officer.

It bans the comptroller from transferring money from the schools unless school spending is at or above an amount required under the state's education law.

William T. Foley, president of the Springfield City Council, said he read the bill on Wednesday night and came away pleased with the powers of the chief administrative officer.

The city budget is $531 million including about $304 million for schools.

Currently, the mayor submits the budget to the City Council, which may cut spending but is barred from approving additional spending. The council also votes whether to approve the budget.

The Control Board currently has the last word on the budget, but that panel is set to be dissolved.

Foley said the chief administrative officer could oppose the mayor's spending items and that opposition would be given a lot of weight and provide leverage to the council on possible budget reductions.

Foley said the chief administrative officer will enjoy some independence from the mayor partly because the officer could only be fired for just cause. Also, the Patrick administration must approve the appointment of the chief officer as long as any portion of the state loan remains unpaid.

"I am happy with the position," Foley said. "It's going to work out very well."

Thomas T. Walsh, communications director for the city, said Mayor Domenic J. Sarno is very pleased with the legislation.

"The legislation paves the way for the city of Springfield to return to self-governing," Walsh said. "It allows the city to become once again a municipal government that operates on its own with transparency, fundamental integrity and a consistent fiscal discipline."

Foley and Walsh said the mayor receives the final say on the budget once the Control Board is eliminated.

Key details of the relief bill Here are some key points in Gov. Deval L. Patrick's bill to provide financial relief for Springfield:
• Gives Springfield 15 years to pay off a $52 million, no-interest state loan, with the extension saving the city an average $7 million a year over the current payback period of five years.
• Creates a chief administrative and financial officer for the city.
• Places a binding question on the November municipal ballot that, if approved, would double the two-year term of the mayor, starting in 2011.
• Puts chief financial officer under the appointment and direction of the mayor in a term not to exceed three years.
• Allows the governor's office to veto the mayor's selection of the chief financial officer as long as any portion of the state loan is outstanding.
• Allows the chief financial officer to appoint a comptroller, with approval of mayor.
• Allows the mayor to appoint the director of internal audit with approval of City Council.
• Repeals the city's annual $90 per container per year trash fee as of July 31, 2011.
• Requires all new or promoted nonunion city employees to become residents of Springfield within six months of an appointment.